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Spice Jet makes Donald Trump happy; to buy planes worth $22 bn from US

Spice Jet makes Donald Trump happy; to buy planes worth $22 bn from US

"I was pleased to learn of an Indian airline's recent order of 100 new American planes, one of the largest orders of its kind which will support thousands of American jobs," the US president said.

US President Donald Trump made a special reference to Indian low cost carrier Spice Jet on Monday for ordering new planes from the US. Trump said that the order was one of the "largest of its kind" and would help create jobs in the US.

Trump made the remark during a joint press conference with visiting Indian Prime Minister Narendra Modi. "I was pleased to learn of an Indian airline's recent order of 100 new American planes, one of the largest orders of its kind which will support thousands of American jobs," the US president said.

Spice Jet has placed an order of  $22-billion for Boeing planes which is likely to help create more jobs in the aviation sector in the US. "This is a $22-billion order and these planes will be manufactured in the US. As per the US Department of Commerce, it creates 132,000 high-skilled, high-paid American jobs within the US," SpiceJet Chairman Ajay Singh said.

Spice Jet has ordered 205 planes from Boeing, which include 40 Boeing 737-10 aircraft. Other Indian low cost carriers such as IndiGo, GoAir, Air Asia and Vistara buys planes from the France-headquartered Airbus.

Donald Trump, who was a surprise winner in the US elections, had fought the elections on the plank of job creation. His protectionist rhetoric has caused concern among many countries, including India. The White House, under his administration, has alleged Indian IT companies take an unfair advantage of the H1B-Visa.

 In fact, the joint statement issued by the White House after the meeting between Donald Trump and Narendra Modi stressed on "free and fair trade", among other issues.

"They (Modi and Trump) also resolved to pursue increased commercial engagement in a manner that advances the principles of free and fair trade.  To this end, the United States and India plan to undertake a comprehensive review of trade relations with the goal of expediting regulatory processes; ensuring that technology and innovation are appropriately fostered, valued, and protected; and increasing market access in areas such as agriculture, information technology, and manufactured goods and services," the statement said.

In the past, Donald Trump has also referred to India imposing high taxes on American motorcycle company Harley Davidson. He had hinted India should reduce the taxes to so that Harley Davidson could sell more motorcycles in India. 

Published on: Jun 28, 2017, 8:38 AM IST
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